Mining transactions: duty requirements

Information to provide when lodging mining transactions.

Is GST payable on the transaction?

If GST is payable this must be included in the consideration for the transaction.

If GST is not payable because:

  • the transaction is a supply of a going concern or
  • the vendor is not registered for GST

please let us know when lodging the transaction.

If GST is not payable for another reason, please provide all relevant facts, legislation references and ATO rulings that justify the transaction not being subject to GST when lodging the transaction.

Additional information to provide

See the questions below to determine the additional information to provide when lodging a mining transaction.

Does the consideration include a royalty, either payable to the vendor or taking on the obligation to pay to a third party?

If yes, please provide: 

  • any relevant royalty deed and 
  • any deed of assignment and assumption.

Does the consideration for the transaction include the grant or transfer of shares, units in a unit trust or options?

If yes, please provide:

  • the number of each
  • any conditions attached (e.g. options subject to meeting performance targets, shares subject to a period of escrow) and 
  • a valuation of those shares, units or options (if available).

Are any rights to particular minerals held by someone other than the owner of the tenement before or after the transaction?

This may include:

  • the transaction includes the grant of specific mineral rights
  • rights to a mineral were previously granted to a third party, and that party will hold similar rights after the transaction
  • rights to a mineral are being retained by the vendor, by way of the purchaser granting those rights after the transaction or
  • rights to a mineral were previously granted to the purchaser.

If any of these circumstances apply, please provide a copy of any document granting or transferring the relevant mineral rights (if it is not contained in the sale agreement). 

If necessary also include a cover letter explaining the full circumstances and rights held by each person before and after the transaction, plus details of duty paid on any previous grant of mineral rights.

Is the transaction between parties who are related or otherwise not dealing at arm’s length?

If the parties are related you must provide the following information with your lodgment:

  • completed duties valuation form for all mining tenements (not required if you provide your own valuation)
  • a copy of any valuation conducted on the tenements in the last three years
  • relevant annual reports, resource reports or geological reports for the tenements or the derivative mining rights in relation to the tenements
  • if the tenements have been included in a public float, or are about to be floated, or have been involved in a takeover in the last three years – a copy of the relevant prospectus
  • if there are any ASX Announcements relating to the tenements – a copy of those announcements and
  • copies of all relevant agreements relating to or affecting the tenements (e.g., joint venture agreements, royalty agreements, derivative mining rights agreements or assignment and assumption agreements).

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